Relationship of micro market and macro environment

Marketing Environment (Study Notes)

relationship of micro market and macro environment

The macro micro and market environments have impact upon a businesses operating success in many ways. Most business prices are set by the laws of supply. There are two kinds of external marketing environments; micro and macro. These environments' factors are beyond the control of marketers but. The relationship between micro, market and macro environments. and employee, etc. and the market environment, e.g. the relationship between competitors.

A macro environment consist of forces that affect the economy as a whole not just specific segments of it. Demographics are the study of population, location, density, size, age, gender, race, age and occupation. Demographics are important because people are the market consumers. Knowing what demographic you are selling a product or service to, allows a company to forecast sales, create market demand, make sure enough product is in production and tailor their product to a specific market segment.

While the natural environment is impacted by natural disasters, weather and unexpected natural events. Natural events can greatly impact growth, production, distribution and purchasing of a product or service. Technological forces come in several different forms. Technology is vital to most of the business world. Technology allows companies to know exactly how much of a product they have in a warehouse, in transit or on the shelves in stores due to bar codes that can be scanned at each point.

relationship of micro market and macro environment

Technology is works in many ways such as communication, tracking and marketing to name a few. The political environment influences marketing through government agencies, laws and groups.

relationship of micro market and macro environment

In summary, the macro environment is involved with the industries, companies, markets, clientsand competitors, while the micro environment can be represented by the suppliers, competitors and customers.

Macro Environment The macro environment is typically segmented for the reasons of analysis. This analysis, commonly referred to as a PESTLE analysis, allows researchers to look at the main six environmental factors that affect a business.

These factors are political, economical, technological, environmental, legal and social.

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Each of these factors indirectly affect the company but the company cannot control them. Instead the company is required to adapt to these factors in the most efficient way possible.

The results of this analysis allow the company to see where their strengths are when adapting to the macro environment and where they could improve on their methods. Micro Environment This field of business deals with the specific environment of the enterprises.

Market environment

New patterns of organization and steering are required to be developed. The political environment includes all lawsgovernment agenciesand groups that influence or limit other organizations and individuals within a society.

It is important for marketers to be aware of these restrictions as they can be complex. Some products are regulated by both state and federal laws.

There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children. There are also many restrictions on subliminal messages and monopolies. As laws and regulations change often, this is a very important aspect for a marketer to monitor. As laws and regulations change often, they create barriers that can hugely influence the way in which companies can market their business across the digital community in particular.

What are the relationships between macro and micro environment in Nigeria marketing system

When conducting business in the United Kingdomthe government is committed to ensuring the best possible platform to start and grow a UK digital business [5]therefore Internet Governance becomes a vital force in the management and control of the growth of the internet and its usage [6] The final aspect of the macro-environment is the social environment, which consists of institutions and basic values and beliefs of a group of people.

The values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence. As a marketer, it is important to know the difference between the two and to focus your marketing campaign to reflect the values of a target audience. These values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence.

With entering into an age where technology has a key role in the forming of social beliefs and values, cultural diversity has developed within the world of digital communities [7]. FacebookTwitterLinkedIn.

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These digital communities consist of many groups of demographics that involve different levels of Internet usage and versatile behaviour with online purchasing [8]. When dealing with the marketing environment it is important for a company to become proactive. By doing so, they can create the kind of environment that they will prosper in and can become more efficient by marketing in areas with the greatest customer potential. It is important to place equal emphasis on both the macro and micro environment and to react accordingly to changes within them.

Environmental monitoringenvironmental forecasting and environmental assessment complete the global environmental analysis. The global environment refers to the macro environment which comprises industriesmarketscompaniesclients and competitors.

Consequently, there exist corresponding analyses on the micro-level. Supplierscustomers and competitors representing the micro environment of a company are analyzed within the industry analysis. Issues are often forerunners of trend breaks.

A trend break could be a value shift in societya technological innovation that might be permanent or a paradigm change. Issues are less deep-seated and can be 'a temporary short-lived reaction to a social phenomenon '. Environmental scanning reinforces productive strategic plans and policies that can be implemented to make the organization get the maximum use of the business environment they are in. Environmental scanning helps a business improve their decision-making process in times of risk to the external and internal environments the business is in.

The scanning process makes the organization aware of what the business environment is about. It allows the organization to adapt and learn from that environment. Environmental scanning is a useful tool for strategic management as it helps them to create and develop the aims and objectives of the company which assists with the production of the company or organization.

CAPS BS 10 TERM 1 WEEK 8 Interrelationship of micro, market and macro environments | Leaddership

When looking at the weaknesses of the organization's placing in the current business environment a formal environmental scanning is used. A common formal environmental scanning process has five steps. The five steps are fundamental in the achievement of each step and may develop each other in some form: The first step of the environmental scanning process requires the identification of the needs and the issues that have occurred that caused the organization to decide an environmental scanning is required.

Before starting the process there are several factors that need to be considered which include the purpose of the scanning, who will be participating in the processes and the amount of time and the resources that will be allocated for the duration of the scanning process.